Old 401k balances

[MsJag4Jag]

I have a 401k from an old company I used to work for. I only worked for them for 2 years. It was too much to withdraw but too much to waste the penalty on...if you understand where I'm going.

I never rolled it over to my other company. It is still growing slowly. However, I'd like to do something else with it....


Do you have any ideas? It might be 10k or so in the account and it is steadily growing, just slowly.

 

[msp1911]

Roll it directly into an IRA. If you roll it directly from your old company into the IRA, then there will be no penalty. I would set up the IRA first, and then have your old company send your money directly to that account. There will be no withdrawal penalty. Any reputable bank or investment company should be able to help you with this.

You can also roll it directly into your 401-k at your current company. However, I think the IRA is better because you have more control over it. You will also have a wider selection of investment options (mutual funds, etc.).

 

[silentrage]

Roll it directly into an IRA. If you roll it directly from your old company into the IRA, then there will be no penalty. I would set up the IRA first, and then have your old company send your money directly to that account. There will be no withdrawal penalty. Any reputable bank or investment company should be able to help you with this.

You can also roll it directly into your 401-k at your current company. However, I think the IRA is better because you have more control over it. You will also have a wider selection of investment options (mutual funds, etc.).

Great advice. I will be doing the same thing with some money I have in a retirement account when I leave GA.

 

[MsJag4Jag]

Thanks. One of my friends told me to check at my bank and with www.janus.com

 

[Killer Bees]

Didn't Janus get in trouble a few years ago? Research them first.

Never invest through a bank (outside of CDs). Try to go for a brokerage account instead.

 

[MsJag4Jag]

Didn't Janus get in trouble a few years ago? Research them first.

Never invest through a bank (outside of CDs). Try to go for a brokerage account instead.

Not sure about Janus, but I will investigate. Thanks for hte info!

 

[Olde Hornet]

Roll it over - I used Charles Schwab to do a roll over recently. It was easy, they offered a lot of choices and no pressure.

 

[CEE DOG]

Rolling it over to a Traditional IRA is the best thing to do. If you roll money over to a Roth IRA you will be taxed again on it.